Terrett wants Congress to stop the SEC from using its regulation by enforcement approach on crypto projects.
Eleanor Terrett, a Fox Business journalist, has disclosed that the United States Congress has the power to ban federal agencies, including the SEC, from spending funds on certain projects.
“I learned today that Congress has the power to ban government agencies from spending money on specific things,” Terrett noted in a tweet today.
The spending bill is currently among the few pieces of legislation that has a chance of passing this year, the Fox Business journalist said.
I learned today that Congress has the power to ban government agencies from spending money on specific things. The omnibus spending bill for FY 2023 (one of the few pieces of legislation that has a chance of passing this year) includes provisions
— Eleanor Terrett (@EleanorTerrett) October 13, 2022
Terrett said one of the provisions in the bill is to stop the Securities and Exchange Commission from spending funds gotten from 2023 fiscal year appropriations on the implementation of amendments made to federal proxy voting rules.
Terrett Raises an Important Question
However, she expressed concern over the upcoming legislation.
Terrett questioned the federal government legislature on why it chose not to add a provision in the bill that would prevent the agency from charging crypto companies for securities violations without a clear regulation approach.
“If Congress is really concerned about the SEC’s regulation by enforcement approach to #crypto, why don’t they add a provision that would prevent the agency from bringing cases without a clear regulatory framework in place?” Terrett quizzed.
Crypto Community Unhappy With the SEC
Many cryptocurrency enthusiasts have frowned at the Securities and Exchange Commission’s regulation by enforcement approach in the cryptocurrency sector. One of the major issues the industry is facing is the agency’s refusal to provide clearer regulations for the emerging market.
Following the soured relationship between specific crypto projects and the SEC, many stakeholders have thrown their weight behind the Commodity Futures Trading Commission (CFTC) to become the appropriate regulator for the crypto space.
However, the SEC is not prepared to lose its control over the crypto industry. The agency has taken significant steps toward showcasing its capabilities.
Terrett disclosed recently that the SEC fined prominent American socialite Kim Kardashian to prove that it deserves equal rights with the CFTC over regulating the cryptocurrency industry.